Chicago Fed's Goolsbee Warns Services Inflation Persists, Questions Return to 2% Target

Chicago Federal Reserve President Austan Goolsbee stated on Monday, June 22, 2026, that persistent services inflation is a key concern for the Federal Reserve. He questioned whether high inflation, currently at 3-4%, will stabilize at these levels or eventually return to the Fed's 2% target. Goolsbee highlighted that inflation has been "far above target" and moving in the "wrong direction." The U.S. May Consumer Price Index (CPI) rose 4.2% year-over-year, while the Fed's preferred Personal Consumption Expenditures (PCE) price index increased 3.8% year-over-year in April, both significantly exceeding the 2% goal. He emphasized that services inflation, historically persistent, is more concerning than price increases driven by temporary factors like tariffs or geopolitical conflicts. Goolsbee also affirmed agreement with Kevin Warsh's view that the Fed should avoid over-committing to future interest rate guidance.